Oracle Financial Services Software: Bullish Target of Rs 10,890 Set by Choice Institutional Equities

Oracle Financial Services Software Maintains Strong Growth Outlook

Choice Institutional Equities has released a report on Oracle Financial Services Software, reaffirming its constructive stance on the company. The report highlights several key drivers that support its positive outlook, including strengthening deal momentum, a high-margin product mix, and robust cash generation.

One of the key indicators of the company's growth is its Remaining Performance Obligations (RPO), which grew by 9.2% quarter over quarter (QoQ). This significant increase in RPO has enhanced the company's medium-term revenue visibility, providing a solid foundation for future growth.

In addition to RPO growth, the company's recent deal wins, improved cost-efficiency, and pricing discipline are driving operating leverage. This, in turn, is leading to an upward revision in the company's margin estimate. These factors have contributed to an upward revision in the company's revenue, EBITDA, and PAT compound annual growth rate (CAGR) estimates over the period of FY26–29E.

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According to the report, the company's strong balance sheet and favorable risk-reward profile support its current valuation. Choice Institutional Equities values the company at 28x its FY28E earnings per share (EPS), which translates to a target price (TP) of INR 10,890. The report reiterates a BUY recommendation, citing the company's product-led model, which drives superior margins and scalability, as well as its strong Oracle parentage, which supports global positioning and client confidence.